Here are five things you need to know this morning:
Tech stocks under pressure on AI rally doubts
Global technology stocks are under pressure after a sharp selloff in South Korean chipmakers reignited concerns that the AI-driven rally may have run too far, too fast. Shares of SK Hynix and Samsung Electronics tumbled, dragging down semiconductor stocks globally and weighing on NASDAQ futures. The tech rally has turned volatile in recent weeks as investors question whether AI hyperscalers’ spending will generate sufficiently strong returns to justify continued investment.
Oil prices rising after weekend airstrikes
Oil prices are rising after the U.S. and Iran exchanged strikes over the weekend. There’s an increasing standoff between the two countries over who controls the Strait of Hormuz. Iran says that ships taking the route are at risk. The U.S. launched strikes on multiple locations in Iran on Sunday to allow traffic through the strait. Iran targeted American bases in Kuwait, Bahrain, Jordan, Oman and Qatar.
Analysts warming to Shopify
Shopify shares traded up 2.5% in U.S. premarket trading after Jefferies raised the stock to buy from hold. The analysts say second-quarter results will likely beat consensus, while a shift of online shopping from a manual to an agentic AI- led experience should be a long-term positive. Last week an analyst at Stifel made a similar call on Canada’s biggest tech company.
Ford reaches tentative labour deal
Ford has reached a tentative three-year agreement with its main union in Canada. Unifor chose to negotiate with the company first -- a similar move to what it did during the last round of talks in 2023. Unifor says the details of the new deal will be presented to members this week for ratification. It is expected to begin talks with General Motors and Stellantis after the Ford agreement is concluded.
China EV-maker coming to Canada
China’s Dongfeng Motors is entering the market to sell EVs in Canada. The state-owned carmaker is in the process of certifying its cars for sale to customers. Dongfeng is holding a showcase that will feature models such as the Vigo and the Nammi Box 01 at the old port of Montreal tomorrow. The company is considering manufacturing in Canada as it has joint ventures with Stellantis and Nissan in Europe and South America.
